PerkinElmer, Inc. (PKI - Free Report) recently collaborated with the world’s largest professional society of hematologists — American Society of Hematology (“ASH”) — to lend support to an initiative to bolster capacity for newborn screening, education and clinical interventions for sickle cell disease (SCD) in sub-Saharan Africa. This tie-up is likely to provide a boost to the company’s Human Health operating unit that comes under the broader Discovery & Analytics Solutions segment.
Notably, PerkinElmer is a global provider of hemoglobin isoelectric focusing (IEF) technology, which helps in the detection of SCD.
SCD at a Glance
Sickle cell disease is known to be a group of disorders, which affects hemoglobin — the molecule in red blood cells that delivers oxygen to cells throughout the body. Around 120 million people globally have SCD, out of which two-thirds live in Africa, where a majority of children suffering SCD die before the age of five. It is important to mention here that even though SCD is serious disease, it can be treated on the basis of early detection.
Significance of the Collaboration
With this tie-up, PerkinElmer and ASH are likely to boost their efforts to provide SCD screening to countries in sub-Saharan Africa. The partnership can help in the investment of resources to build screening networks, education, clinical intervention and advocacy through the Consortium of Newborn Screening in Africa (CONSA).
Although universal newborn screening for SCD is in practice in many high-income countries, most of Africa is deprived of it. Early detection is crucial and will enable health care providers to start effective treatment and enhance long-term health outcomes of children with SCD.
In February, the company announced that it has been chosen as one of the providers of a newborn screening test for Severe Combined Immunodeficiency (SCID). Notably, this was in collaboration with Public Health England’s SCID evaluation program.
According to a Medgadget report, the global newborn screening market was valued at $561.5 million in 2018 and is projected to see a CAGR of 12.4% over the forecast period (2018-2026). Increase in government initiatives associated with newborn screening and recent developments in the technology are anticipated to drive the market.
Hence, this collaboration is a well-timed one for PerkinElmer.
Shares of the Zacks Rank #3 (Hold) stock have gained 2% in a year’s time, against the industry’s decline of 11.3%.
Some better-ranked stocks from the broader medical space include Quest Diagnostics Incorporated (DGX - Free Report) , Laboratory Corporation of America Holdings (LH - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) . While West Pharmaceutical sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and Laboratory Corporation carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has a projected long-term earnings growth rate of 9.2%.
Quest Diagnostics has an estimated long-term earnings growth rate of 7.6%.
Laboratory Corporation has an estimated long-term earnings growth rate of 6.1%.
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